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Transnet’s chairwoman resigns along with two other board members

South Africa’s state-owned logistics utility Transnet has received the resignation of its chairwoman Linda Mobosa along with that of non-executive directors Vusi Nkonyane and Yasmin Forbes. This was announced by the public enterprises department on Thursday 3 May.

While announcing the latest development, Public Enterprises Minister Pravin Gordhan didn’t give reasons for the board members’ resignations, which came a day before the parastatal was scheduled to hold a shareholder’s meeting. However, the company will soon announce new appointments, Gordhan said.

Prior to the latest resignations, Garry Pita, Transnet’s chief financial officer, tendered his resignation in April citing ill health. The government has expressly noted that he wouldn’t be absolved from the responsibility for irregularities at the company that needed to be addressed.

The utility company is in the middle of a crisis that ensued from being accused of irregularities in the awarding of contracts. The firm currently is carrying out investigation into them procurement of 1,064 diesel and electric locomotives worth around 54 billion rand ($4.5 billion).

Transnet and state-owned power utility Eskom which are overseen by the public enterprises department are both in connection with extensive allegations of corrupt behavior over a long period. Optimum Coal Mine management in February also laid the blame for the company’s severe financial woes at the door of the state-owned companies Eskom and Transnet.

In the light of the corruption allegations before Transnet and Eskom due to their connection to the Gupta family that is at the center of South Africa’s corruption inquiries, Public Enterprises Minister Pravin Gordhan earlier this week proposed to parliament that lifestyle audits should be conducted for state-owned enterprises executives.

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